Now that Bitcoin has dropped below $6,000, many investors are worried whether or not to sell their share at this point. Do you HODL or do you minimize the losses? There are those saying that the worst is yet to come. In 2017, Bitcoin was able to reach almost $20,000.
If you will ask the Co-Founder and CEO of BitMEX, he predicts that Bitcoin is going to sell as high as $50,000 by 2018. And this prediction has been described as a “SuperBowlish Forecast”.
One Regulatory Step Away
Many experts are saying that regulatory clarity is what is preventing institutional investors from getting involved in the market. Hayes mentioned that Bitcoin is simply one positive regulatory decision away in order to surpass its $20,000 all-time high and reach $50,000 by the end of the year. He also thinks that the bearish trend is simply a correction.
According to Hayes, “I think that something that goes up to $20,000 in one year can have a correction down to $6,000 and will definitely find a bottom at about $3,000 and $5,000 range”.
There are other crypto experts that have the same opinion regarding Bitcoin. In fact, many long-term investors have continued to HODL seeing another bull-run on the horizon in the future.
BitMEX Tripled Trading Volume
BitMEX is the world’s largest crypto exchange in terms of volume. Hayes mentioned that his company has so far tripled its trading volume from last year. Hayes believes that a decrease in the price of Bitcoin could actually reduce the volatility of the entire crypto market.
Hayes is also confident that there will be a trend reversal. He also cited historical patterns that made Bitcoin price go bullish after experiencing bearish trends. He also believes that the cycles are expected to happen quicker since the trading volume has significantly increased these days.
And what exactly could trigger a correction? He believes that a positive regulation is necessary to trigger this bullish run. Recently, SEC considered both Bitcoin and Ethereum as commodities and not as securities. He also believes that the ETF will bring serious capital into the table.
Opposite View on Bitcoin
Of course, there’s a negative view on Bitcoin. Yukio Noguchi who works as an advisor to Wasda University’s Business and Finance Research Center thinks that Bitcoin can’t have another rapid surge. He points out that the availability of Bitcoin futures prevents Bitcoin from having another surge. He said that there are those who are already betting that Bitcoin could actually fail. San Francisco Federal Bank is also agreeing with Noguchi in his view pointing Bitcoin futures why this is the case.
Should you HODL or should you sell your Bitcoin at this point? It is true that no one knows exactly what could happen next. However, it is true that regulators are making the necessary steps in order to protect investors and to pave the way for the entry of the institutional investors. But is Bitcoin really going to have another bull-run in the coming months? It all remains to be seen in the future.